- DOGE could rally +43% after fronting a bullish breakout.
- However, overall, bearish market sentiment could delay the outlook.
Dogecoin [DOGE] saw price relief in early July and tucked over 30% in the past two weeks amidst overall recovery.
This week, the recovery stalled and retracted over 11%, dropping the memecoin to $0.12. The press time level was similar to DOGE’s price consolidation in late June.
However, it could see 44% gains after fronting a bullish breakout. Renowned crypto analyst Ali Marinez tipped an upside potential for DOGE, citing a breakout pattern on the falling wedge pattern.
‘It looks like Dogecoin broke out of a wedge, which suggests an upside target of 44%!’
Source: X/Ali M
For perspective, falling wedges are typical bullish patterns that tend to front rallies in most cases after the breakout. The potential breakout tends to be equivalent to the height of the wedge – in this case, over 43%.
Another user echoed the long-term bullish outlook, citing a first weekly golden cross that could rally DOGE 18,000%.
Does DOGE’s spot and derivatives market agree?
From a derivatives perspective, DOGE’s market sentiment was bearish as of press time, as denoted by a near 10% decline in open interest (OI) rates. Additionally, volume dropped significantly amidst an overall crypto market meltdown on Wednesday.
DOGE also saw significant spot outflows from mid-week, denoting a risk-off approach that could delay the 43% upswing projection.
Nevertheless, a 10% rally was still possible in the short term, as illustrated by the 4-hour chart. Notably, the RSI (Relative Strength Index) had retreated near oversold territory, which suggested that a bullish reversal could be likely.
If so, the immediate price targets could be $0.1275 and $0.1325. Hitting the latter translates to a 10% gain.
However, DOGE could slide to $0.11 if $0.12 support breaks in the short term.
Source: DOGE/USDT, TradingView
Interestingly, there wouldn’t be much resistance at 0.14 or $0.13 levels since very few addresses bought the meme coin at those levels. This reduces the odds of profit-taking if recovery hits the targets.
Source: IntoTheBlock